Question
A company had EBIT of Rs.3,70,000. The interest expense
was Rs.45,000. The tax rate is 30%. The company paid Rs.31,000 dividend. What is the retention ratio of the firm?Solution
Retention ratio = (net profit – dividend) / net profit Retention ratio = ( EBIT – interest – tax – dividend) / net profit Retention ratio = (370000 – 45000 – 97,500 – 31,000) / 2,27,500 Retention ratio = 86.37%
More Audit Questions
- What approximate value will come in place of the question mark (?) in the following question? (Note: You are not expected to calculate the exact value.)
18.22 × 11.99 + 154.15 = ?
(20.23% of 780.31) + ? + (29.87% of 89.87) = 283
2875.45 + ? – 2762.19 = 2145.72 – 1956.63
13.99% of 399.99 ÷ 28.17 = ? ÷ 25.15
Approximate the value of (19.98 × 5.02) ÷ 0.99
(8.013 – 25.04) = ? + 11.98% of 2399.98
(14.98% of 319.99) - 7.998 = √?
20.22 × 11.99 + 140.15 = ?
- What approximate value will come in place of the question mark (?) in the following question? (Note: You are not expected to calculate the exact value.)
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